The developments after Elon Musk acquired Twitter in 2022 (newly called X), still on the agenda in 2025. The company has approached the agreement with former employees in the case of a long -standing $ 500 million severance pay. The parties stated that they needed more time for negotiations and asked for the postponement of the hearing. This process was the light of hope for employees who have been waiting for them to pay for years. On the other hand, the case draws attention not only in terms of financial aspects, but also in terms of employee rights.
Large -scale layoffs, which began immediately after Musk took over, left deep traces in the life of thousands of employees. While approximately 6 thousand people were unemployed, the total number of employees of the company decreased by 80 percent. Three -month compensation was promised to employees, but most of the payments were incomplete. Some former employees could not get any payment. This made the case inevitable and the employees’ search for rights was moved to the court.
X also took an important step in terms of corporate image
The basic basis of the plaintiffs was the severance pay plan formed in 2019. According to this plan, senior employees had to receive a salary of up to six months and obtain additional payment for each year. However, the new administration was not loyal to this plan and payments were not made on this scale. In addition, the uncertainties exposed to employees in this process expanded the legal debate. However, Musk’s attitude did not change for a long time, and employees had to search for their rights through court.
Last year, the Federal Court in San Francisco made a decision that frustrated the expectations of the plaintiffs. The court ruled that Musk did not have to implement contracts made during the Twitter period. This decision was morale for employees. In spite of everything, the plaintiffs appealed the decision and was preparing to defense in the appeal court. In addition to all these, the process gained a new dimension at this stage.
The fact that the parties turned to compromise before the appeal changed the course of the case radically. According to the court records, additional time was requested for interviews. This development strengthened the possibility of the agreement and led to the possibility that the case could close in a short time rather than a long trial. But the fact that the parties are still on the table shows that uncertainties continue in the details of the agreement. However, it can be said that a hopeful atmosphere has occurred.
For X, the closure of this case means a critical turn not only in financial terms but also in terms of corporate image. Because the demand for $ 500 million stands out as one of the highest consistency lawsuits faced by the company. In addition, the management style of layoffs created controversy in both the public and the world of technology. In addition to all these, X is still dealing with different cases. For this reason, every move of the company is carefully monitored.
After Musk bought Twitter, the company’s revenues were seriously affected. The fact that advertisers move away from the platform led to a deterioration of financial balance. On the other hand, the difficulties experienced by the company during the restructuring process did not go unnoticed. In addition to this table, possible payments from the case may further increase the company’s burden. In this context, reconciliation is of vital importance financially.
In spite of everything, the fact that former employees did not stop looking for their rights determined the course of the process. The determination of the employees in the case was one of the factors that led the company to compromise. In addition, the public pressure on the company continued to influence. However, the details of the agreement are still not clear, and this process of uncertainty makes it dynamic. In addition to all these, the agreement can allow the elimination of the grievances of former employees.
The conclusion of the case with a compromise may reduce the tension between the company and the old employees. This possibility will both bring the payments they have been waiting for for years and have a closing meaning for the company. On the other hand, the numerical dimension of the agreement is not known for now. Explanations from the court will show how the process will progress.